June 7, 2004, Upper Marlboro, Md.—Today, the NAHB Research Center proudly announces the first home builders in the nation to earn certification as part of its National Housing Quality (NHQ) Program’s pilot Certified Builder initiative. Grayson Homes, a privately-held builder headquartered in Ellicott City, Md., and KB Home Las Vegas Division, a publicly-held, national home builder, recently earned their quality assurance certifications following a rigorous NAHB Research Center audit of the implementation of their quality assurance systems. Other builders participating in the pilot NHQ Certified Builder program are moving toward certification by the end of the year.

Participation in the NHQ Certified Builder program is designed to increase efficiency and consistency in building practices. The Certified Builder program provides a rigorous and complete review of business practices, and ensures that all elements of the company’s quality assurance system are incorporated to provide greater customer satisfaction. Certification candidates participate in field and office training to implement their quality program, work more efficiently with their trade contractors, and begin the continuous improvement efforts required by all NHQ Programs.

NAHB Research Center president Michael Luzier said, "I am excited about how the NHQ Certified Builder program is developing and am confident that its implementation on a national scale will bring about greater efficiencies for participating builders and even higher rates of customer satisfaction. I’d like to thank the participants in this ongoing pilot program—they are industry leaders whose partnership continues to be a vital part of program development and the evolution of quality assurance in home building."

Grayson Homes—A Solid Quality Foundation
Even before participating in the pilot Certified Builder program, Grayson Homes has had a visible dedication to quality assurance and customer satisfaction. In 2002, Grayson's trade contractors began training with the NHQ Certified Trade Contractor program. In 2004, Grayson won the NHQ Silver Award, which is patterned after the Malcolm Baldrige National Quality Award and represents the highest recognition by the housing industry for quality achievement.

Cindy McAuliffe, president of Grayson Homes, said, "Achieving and maintaining our status as an NHQ Certified Builder will engrain consistency and predictability into all facets of our home building business. It will be an easily-observable demonstration of our quality commitment to our buyers, trades, and employees, that aligns our performance with our mission and provides a valuable third-party testimonial of our quality." This commitment to quality is further demonstrated by the feedback Grayson receives through their customer satisfaction surveys—96 percent of their customers say they would either refer the company to a friend, or would choose Grayson again when buying another home.

KB Home Las Vegas—Leading the Quality Charge KB Home Las Vegas has been a pioneer in quality assurance in the home building industry. In November 2003, after the Las Vegas division successfully implemented the NHQ Certified Trade Contractor program, KB Home Chairman and Chief Executive Officer Bruce Karatz announced that the company would become the first large builder in the country to implement the NHQ Certified Trade Contractor program nationwide.

Leah Bryant, regional general manager of KB Home (former president of KB Home Las Vegas), said, "Building on our stringent internal quality processes, KB Home's participation in the NHQ Certified Builder Program sends a powerful quality message to our customers. So far, as a result of program implementation, [the Las Vegas division] has seen a four-day improvement on our build time with the confidence that we and our trade partners are building with a consistent commitment to quality."

KB Home delivered more than 3,300 homes in Las Vegas in 2003 and ranked in the top three in the J.D. Power and Associates 2003 New Home Builder Customer Satisfaction StudySM in Las Vegas.

Dean Potter, director of quality programs at the NAHB Research Center, said, "By focusing builders and trade contractors on getting the job done right the first time, NHQ certification differentiates those who talk about quality from those who can demonstrate it. These first two NHQ Certified Builders certainly represent that differentiation."

During the 2005 International Builders' Show in Orlando, the NAHB Research Center will officially launch the national roll-out of the NHQ Certified Builder Program. In the interim, builders interested in starting on the path to quality certification can visit www.nahbrc.org/quality, email quality@nahbrc.org., or call Rita Knab, NHQ program coordinator, at (800) 638-8556, ext. 6225.

About the National Housing Quality Program: The NAHB Research Center launched the NHQ Program in 1993. The NHQ Program has introduced many of the concepts of the worldwide quality revolution to home building and remodeling, and provides numerous opportunities for collaboration among the various industry stakeholders. NHQ activities include the pilot Certified Builder program, Certified Trade Contractor program, Manufacturer Training Certification program, and co-sponsorship of the National Housing Quality Award program. Response among builders, trade contractors, remodelers, code officials, building inspectors, and the insurance industry to the NHQ Program's quality initiatives has been very positive.

06/04

The NAHB Research Center, located in Upper Marlboro, Md., promotes innovation in housing technology to improve the quality, durability, affordability, and environmental performance of homes and home building products. Created 40 years ago as a subsidiary of the National Association of Home Builders (NAHB), the NAHB Research Center has established itself as the source for reliable, objective information and research on housing construction and development issues. Through its various testing and certification services, the Research Center seal is internationally-recognized as a mark of product quality and an assurance of product performance.

NOTE TO EDITORS ON STYLE USAGE: To identify this company and its work correctly, first reference should be "NAHB Research Center." If clarification of the acronym is necessary, the phrase, "a subsidiary of the National Association of Home Builders (NAHB)," can follow. In subsequent mentions, "Research Center" is the only acceptable and accurate alternative reference.

About Grayson Homes:
For the past 25 years, Grayson Homes has been building homes—building communities—of enduring value, providing people outside and inside the company with experiences that exceed expectations and improve quality of life. Its success is directly attributable to the work ethic and expertise of its craftsmen, the quality of materials used, and the prime land chosen. All of these aspects combine to provide remarkable homes for Grayson clients. Today, over 2,900 families throughout Maryland come home to a fine Grayson Home.

About KB Home:
Building homes for nearly half a century, KB Home is one of America's premier home builders with domestic operating divisions in some of the fastest-growing areas of the country including Arizona, California, Colorado, Florida, Georgia, Illinois, Nevada, New Mexico, North Carolina, South Carolina, and Texas. Kaufman & Broad S.A., the company's majority-owned subsidiary, is one of the largest home builders in France. In fiscal 2003, the company delivered homes to 27,331 families in the United States and France. It also operates a full-service mortgage company for the convenience of its buyers. Founded in 1957, and winner of the 2004 American Business Award for Best Overall Company, KB Home is a Fortune 500 company listed on the New York Stock Exchange under the ticker symbol "KBH." For more information about any of KB Home's new home communities, call 888-KB-HOMES or visit kbhome.com.

FOR IMMEDIATE RELEASE
CONTACT: Lisa Gibson
800-638-8556, x6269
lgibson@nahbrc.org